LA Payroll - Direct Deposit-Payroll or Accounts Payable (1-03)

Logos Accounting provides a Bank ACH option for direct deposit Payroll. This option automatically transmits payment data to move money from your bank account into specified employee and/or vendor bank accounts. You must contact your bank and make sure they accept Nacha files for electronic transactions.

Set up Your Data for Direct Deposit (See detailed directions in this Help file.)

1. Modify the Bank Account record (Preferences > Banking screen), making sure all the information on the Data Entry, Bank Info, and Bank ACH is correct and complete.

2. Also on the Banking screen, under the blue question asking, How is Direct Deposit processed?, mark the Bank ACH option. Then select the Bank ACH button to define the system you will be using.

3. Go to the Payroll screen and select the Employees button. Open the Salary Information tab for each employee whose paycheck is to be deposited directly. Mark the EFT Deposit check box then click the Define Distribution button to open the window in which to define the employee’s bank account(s) into which payments are to be deposited. Click the Add button and enter the Type, Routing Number, Account Number, and Bank Name for each bank account into which the employee wants money deposited. If defining more than one account for an employee, mark the Primary check box for the account that is to receive whatever balance is left after distribution to the other accounts. Define those other accounts with either a Percentage or Dollar Amount. (The Amount/%field cannot be edited for the Primary account.)

4. On the Accounts Payable screen, select the Vendors button. Open the Personal tab for each vendor for whom payments are to be made electronically. Below the Address fields, mark the EFT Deposit check box and click on the Define Distribution button. Then click the Add button and enter the Type, Routing Number, Account Number, and Bank Name for the bank account into which the vendor wants money deposited.

If using Bank ACH software, your bank will likely require you to run a test to verify that it can read the data you are sending. To do so, follow these steps.

Create a New Data Set to Use for the ACH Test 

5. On the ribbon’s System & Users tab, select Maintain Users on the Users panel. Create a new Username/Password (e.g., TEST/test) linked to a new data directory (e.g., TEST).

6. Also on the System & Users tab, choose the Backup routine and backup your data.

7. Go to the ribbon’s File tab and choose Open Data Set. When prompted, enter that new Username/ Password. Empty files will be created in the new directory as it opens.

8. Go to the System & Users tab, choose the Restore routine, and restore the backup you just created. Because this data is now in a totally separate data directory (\logoswin\gl\test), any work you do in it has no effect on the original data in the \logoswin\gl\data directory.

Run a Test Payroll for Bank ACH

9. On the Payroll > Data Entry panel, run Process Payroll, selecting only employees defined for Direct Deposit. No checks will print, but you can print or preview stubs for those selected. (If any non-EFT Deposit employees are selected, you will be prompted to print checks for them. At the Output Destination screen, mark the Print Preview option to view the checks. After closing the preview, click the Commit button to proceed.) The posting function will store the payroll data for the EFT Deposit employees in a temporary file (nacha.dbf).

10. Run the Export E-Pay/ACH (Direct Deposit) utility to create a text file (nacha.txt) and then run your bank’s direct deposit software. (In some cases you may just send the file to the bank.  The nacha.txt file contains the data listed below:


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